The main types of commercial bank loans

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  • / Author: Aaron Lewis
    The bank in order to reduce their lending business risk, the requirement for business customers to provide security to reduce the potential risks and costs. In accordance with the security can be divided into different credit loans, loan guarantees, mortgage, pledge loans and bills discounted loans.
    Credit refers to enterprises or individuals need not provide full security, with the credibility of the understanding of all or part of a loan. At present, personal loans more restricted, mainly some have the strength of large enterprises can achieve this loan.
   The mortgage is a mortgage lender in the "security law" provisions of the mortgage to the borrower or the third party's property as collateral loans.
   Mortgage refers to the lenders under the "security law" provisions of the pledge to the borrower or the third party's immovable property or rights as collateral loans.
   The difference between mortgage and pledge is: 1 mortgage subject matter usually as immovable property, especially real estate (car, boat); pledge to movable property. 2 mortgage to the registration before the entry into force, the pledge is only possession can. 3 mortgage only simple security effectiveness, the pledgee can dominate the matter, and can manifest the lien potency. The realization of the 4 mortgage right mainly through to the court for the auction, and pledge more direct sale.
   Loan guarantees that the lenders under the "security law" provisions of the guarantee to third people promise to repay the loan principal and interest in the borrower can not, in accordance with the regulations shall bear joint and several liability and loans. The guarantor provides guarantee for the loan loan guarantee can't cancel full joint and several liability, but also means that the provisions of the loan contract in the loan principal and interest and related costs caused by the loan contract. The guarantor shall bear joint and several liability caused by all of the loan contract.
   Bank bill discount loans of the banks to buy customers outstanding bank acceptance bills of exchange or commercial acceptance bills to the enterprise loans.